On the occasion of the recent press conference on fulfilling the second quarter’s duty and preparing for the industry’s 50th anniversary, Vietnam Business Forum interviewed Standing Deputy Construction Minister, Prof. Nguyen Van Lien about the industry’s determination to contain inflation.
The Government and ministries are doing their best to control inflation as 2008 is a transitional year in the industry’s five-year plan (2006-2010). How is the Ministry implementing the plan this year?
To successfully complete the plan for 2008 in particular and the five-year target in general, the Construction Ministry has concentrated on the following tasks since the beginning of the year:
Continuing to compose legal documents, including 18 documents to submit to the Government and the Prime Minister, and 44 ministerial-level documents. Along with organising training courses to widely disseminate the Law and related legal documents over branches and localities.
Continuing to check administrative procedures in construction investment under direct instruction by the Prime Minister to solve difficulties for investors. In the first quarter, the Ministry has boosted administrative reform over such fields as finishing the draft Law of Urban Planning, improving contents of some Decrees in construction investment and guidance of executing the Housing Law.
In the past three months, the Prime Minister has promulgated the Decision on organising a system of non-business bodies directly controlled by the Ministry. On such basis the Ministry has issued decisions defining the functions, responsibilities, authorities and organisational mechanisms of assistant bodies, Research Institute, Institute of Construction and Urban Management Cadres. The Ministry is also checking legal regulations related to the Industry’s activities, to make any amendment and minimise administrative procedures. Undertaking activities of two taskforces – the coordination between the Construction Ministry and People’s Committees of Hanoi and Ho Chi Minh City in managing construction and urban development schemes and other fields under the Ministry’s administration within the municipal area.
How did the Ministry monitor and develop key tasks in the first quarter?
We are promptly composing the Urban Planning Law. In addition, we have issued Circular No. 03/2008/TT - BXD guiding the adjustment of construction estimates, for example for work and budget funded contracts undertaken since January 1st, 2008, which are under regulations prior to Decree No. 99/2007/NNÄ - CP dated June 13th, 2007 by the Government on managing construction investment costs.
To consolidate regulations of urban road management, the Ministry issued Circular No. 04/2008/TT - BXD dated February 20th, 2008 guiding urban road management in order to achieve unique and synchronous construction, management and usage of urban roads (from the fifth tiered urban centre upwards), thereby improving efficiency of investment and utilisation and urban appearance.
A lot of construction projects have suffered from the material price storm. Sharp fluctuations in fuel and construction materials have impacted the progress of investment schemes. After receiving instruction from the Prime Minister, the Ministry has proactively coordinated with the Investment and Planning Ministry and the Finance Ministry to issue Circular No. 05/2008/TT - BXD dated February 22nd, 2008 guiding the adjustment of price and construction contracts due to swings in fuel and material price.
How did the Ministry direct inflation control?
In March and the first quarter, production value of the Industry has increased much higher than the same period last year, to VND10,177 billion in March and VND27,063 billion in the first quarter, equivalent to 22.5 per cent of the annual planned value, up 42 per cent compared to the same period last year. However, in the current national economic difficulties, many companies, particularly those in the construction field, are facing problems with soaring input prices.
The Industry has planned to examine the management quality of construction projects in ministries and instruct the quality management in several localities. The Ministry held a conference on the cement market in quarter I, 2008 in the southern region, finishing the draft statement to submit to the Prime Minister for approval of the project exploring and exploiting minerals to manufacture cement in Vietnam by 2020. The Ministry also instructed industries and localities to economize in construction, managing investment costs, paying and drawing the balance sheet of investment expenses, and addressing difficulties in the investment process. Other activities include studying and composing solutions of healthy property market management and development to submit the Government and the Prime Minister, controlling abrupt price rise of property, especially apartments for low-income class, and checking and submitting the National Assembly amendment of Housing Law and Law of Property Trading.
Regarding implementation of the policy expanding Hanoi’s administrative border, the Ministry has submitted documents suggesting the People’s Committees of Hanoi, Hoa Binh, Vinh Phuc and Ha Tay examine all construction projects and plans. The Ministry also holds inspection delegations in these localities. The Construction Minister has issued Decision No. 162/QQÄ-BXD announcing the Ministry’s action plan on saving, anti-waste, and active participation in inflation control.
Anh Tuan
Vietnamese
